Unlocking Efficiency and Sustainability: The Model Law on Electronic Transferable Records (MLETR) and Electronic Docs with XDC Network
The Model Law on Electronic Transferable Records (MLETR) is a legal framework. It is a model law developed by the United Nations Commission on International Trade Law (UNCITRAL) to promote the use of electronic transferable records in various legal contexts, including international trade, commerce and finance.
The environmental consequences alone, of not requiring the 4 billion pieces of paper daily, will also be a wonderful consequence of going paperless. And that is just the Supply Chain Trade volumes of Paper.
The purpose of MLETR is to provide a standardised legal framework that jurisdictions can adopt to recognize and facilitate the use of electronic transferable records. It sets out principles and rules for the creation, transfer, and enforcement of rights in such electronic records.
By providing a model law, UNCITRAL aims to encourage countries to harmonise their legal systems regarding electronic transferable records, thereby fostering greater efficiency, transparency, and legal certainty in cross-border trade and commerce.
The MLETR is designed to be adaptable and flexible, allowing countries to incorporate it into their national laws with necessary adjustments to fit their specific legal and regulatory requirements. It serves as a foundation for countries to develop their own legislation and regulations around electronic transferable records.
MLETR can streamline various government services that involve the issuance, transfer and verification of official documents, licences and permits. Given how much Government regulations there is – this could be one of the largest single sectors to improve processes.
A matter of Traceability and Transferability: Trade Use-case related to Logistics, Shipping and Supply Chain
How can XDC Network assist the World of Trade & Payments? Setup a MLETR compliant Digital Trade Documents gateway through XDC Trade Network, of course! Here are the benefits >
Improved supply chain visibility
By tokenising products and assets on a blockchain, each item in the supply chain can be traced and tracked in real-time. This enhanced visibility reduces the risk of counterfeit products, ensures authenticity, and provides consumers with more information about the origin and journey of the products they buy.
Cross-border trade facilitation
Blockchain’s decentralised nature and smart contract capabilities streamline cross-border trade, reducing delays caused by bureaucracy and paperwork. This can make international trade more efficient and accessible to a broader range of participants.
Reduced fraud and disputes
The transparency and traceability of blockchain tokenisation help prevent fraud and resolve disputes quickly by providing a verifiable record of all transactions and ownership changes.
Compliance and regulatory benefits
Blockchain technology can incorporate compliance rules and regulations into smart contracts, ensuring that trade activities adhere to legal requirements and industry standards.
Transparent and auditable records
All trade-related transactions and data are recorded on an immutable blockchain ledger. This transparency and auditability increase trust among trading partners and regulatory authorities.
Some examples of Key parts of Supply Chain being tokenised
Bills of Lading Bills of lading are crucial documents in international trade, serving as evidence of the contract of carriage and receipt of goods. MLETR can facilitate the use of electronic bills of lading, reducing the reliance on paper-based documents and enhancing efficiency in shipping and logistics.
Warehouse Receipts In the context of commodity trading and warehousing, MLETR can enable the digitization of warehouse receipts, making it easier to transfer ownership and facilitate financing against stored goods.
Promissory Notes MLETR can be applied to digital promissory notes, allowing for electronic issuance, transfer, and settlement of these financial instruments.
Certificates of Origin Certificates of origin certify the country in which goods are produced. MLETR can simplify the issuance and verification of these certificates in electronic format, streamlining the international trade process.
Further, Trade Credit Insurance MLETR can facilitate the digitisation of trade credit insurance policies, making it easier to manage and transfer insurance coverage for trade transactions.
The Tokenising of Conveyancing and Administrative Organisations
Other use-cases for Electronic Document Management – The Tokenising of Conveyancing and Administrative Organisations.
Blockchain tokenisation can transform any industry that hinges on the movement of paper. By leveraging these advantages, businesses can streamline their traditional processes, optimise resources and create new opportunities for growth and innovation in the global marketplace.
An example of an industry that deals with moving papers and authorisations in bureaucracies is often referred to as “Document Management” or “Document Processing”. This industry focuses on the organisation, storage, retrieval and processing of various types of documents, including forms, applications, contracts and other paperwork.
Overall, MLETR and the principles it introduces can be adapted to enhance the efficiency, security and member experience in all sorts of industry, making it more convenient and modern for all stakeholders involved. Here are some other potential use cases where MLETR principles could be assigned on the Blockchain in the realm of Document Management:
Electronic Documentation MLETR allows for the use of electronic transferable records, making it possible to digitise the various legal documents involved in conveyancing, such as contracts, deeds, and title documents. In the real estate industry, MLETR can be utilised to digitise property titles and transfer ownership securely and efficiently.
Faster and Secure Transactions The use of electronic transferable records and blockchain technology, which MLETR may leverage, can expedite the conveyancing process, reducing the time it takes to verify and transfer property ownership.
Intellectual Property Rights MLETR can be used to manage and transfer intellectual property rights in a secure and tamper-resistant manner, such as patents, trademarks, and copyrights.
Enhanced Transparency and Traceability Blockchain-based records provide a transparent and immutable audit trail of all conveyancing transactions, increasing trust among parties involved and reducing the risk of fraudulent activities.
Simplified Compliance MLETR can help ensure compliance with relevant property laws and regulations, streamlining the conveyancing process and reducing the risk of errors and omissions.
Remote Transactions Electronic conveyancing enables parties to engage in property transactions remotely, eliminating the need for physical presence and paperwork, which can be especially useful for cross-border transactions.
Improved Access to Property Data The use of electronic transferable records can make property data and transaction history more accessible and readily available to relevant stakeholders, such as buyers, sellers, and regulatory authorities.
While the adoption of MLETR in conveyancing offers significant benefits, it is essential to consider the specific legal and regulatory requirements of the jurisdiction in which the conveyancing is taking place. Additionally, the acceptance of electronic transferable records in conveyancing may depend on the willingness of all relevant parties, including government authorities, to embrace digital solutions and adapt their processes accordingly.
For example, while implementing MLETR in superannuation offers numerous advantages, it is essential to consider relevant legal and regulatory frameworks. The adoption of electronic records must comply with data protection laws and other applicable regulations to safeguard the privacy and rights of superannuation member